Iowa’s Unemployment Rate Drops to 2.5 Percent in July

Iowa Workforce Development Communications
For Immediate Release
Date: August 18, 2022
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email:  communications@iwd.iowa.gov

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Iowa’s Unemployment Rate Drops to 2.5 Percent in July
July’s Rate Lowest Since May 2019

DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate dropped to 2.5 percent in July, down from 2.6 percent in June and 4.4 percent one year ago. The U.S. unemployment rate decreased to 3.5 percent in July.

The number of unemployed Iowans decreased to 43,300 in July from 43,900 in June. The total number of working Iowans increased to 1,667,200 in July. This figure is 1,800 higher than June and 58,600 higher than one year ago.

Overall, the state’s labor force participation rate remained at 67.8 percent in July, despite 1,400 Iowans rejoining the labor force. Iowa added a total of 3,800 jobs.

“July’s good news shows that, despite current national economic challenges, Iowa’s economy continues its positive direction,” said Beth Townsend, Director of Iowa Workforce Development. “We are helping workers find new career pathways, and we remain laser focused on reemployment so we can help every Iowan find the right job and every employer find a qualified workforce.”

Seasonally Adjusted Nonfarm Employment

Iowa total nonfarm payroll employment advanced by 3,800 jobs in July. This monthly gain was the fourth consecutive increase and was largely due to service industries bolstering payrolls, particularly within professional and business services and health care. While private services again took a step forward this month (+3,100), government also added jobs primarily at the local level and related to temporary summer programs (+700). Following the gain, government now stands 6,100 above last year’s mark while the state is up 33,900 jobs.

Health care and social assistance added the most jobs of any sector in July, gaining 1,300 jobs from June. This sector has been slow to recover since the pandemic began, but growth has been evident in 2022 with 2,300 jobs gained this year. Administrative support, waste management, and remediation industries added 1,000 jobs in July. Much of this increase was fueled by hiring of seasonal staff to help with services to buildings and dwellings, specifically landscaping. Manufacturing added jobs this month (+800) with gains in both durable and nondurable goods factories. This sector continues to trend upward and has added 6,700 jobs in 2022 thus far. Conversely, job losses were most evident in retail trade in July (-800), particularly for miscellaneous store retailers. This decline now marks the fifth straight loss with 3,900 jobs pared during that span. All other losses were sparse in July with small drops in construction (-300), financial activities (-200), and leisure and hospitality (-200).

Over the past 12 months, Iowa firms have added 33,900 jobs. Despite little movement this month, leisure and hospitality has gained the most jobs (+10,100). Accommodations and food services alone are up 8,800 jobs. Manufacturing is now up 7,700 with hiring being slightly greater in nondurable goods factories (+4,600). Food manufacturing, particularly slaughtering and meat packing, has been especially robust. Trade, transportation, and utilities are up 5,000 with hiring being particularly strong in transportation and warehousing.

MEDIA ALERT:  Local data for July 2022 will be posted to the IWD website on Tuesday, August 23, 2022.  Statewide data for August 2022 will be released on Thursday, September 15, 2022 at 9 a.m.

 

Employment and Unemployment in Iowa, Seasonally Adjusted Data
           
        Change from
  July June July June July
  2022 2022 2021 2022 2021
           
Civilian labor force 1,710,600 1,709,200 1,682,700 1,400 27,900
Unemployment 43,300 43,900 74,100 -600 -30,800
Unemployment rate 2.5% 2.6% 4.4% -0.1 -1.9
Employment 1,667,200 1,665,400 1,608,600 1,800 58,600
Labor Force Participation Rate 67.8% 67.8% 67.1% 0.0 0.7
           
U.S. unemployment rate 3.5% 3.6% 5.4% -0.1 -1.9
           
Nonfarm Employment in Iowa, Seasonally Adjusted Data
           
Total Nonfarm Employment 1,575,200 1,571,400 1,541,300 3,800 33,900
Mining 2,300 2,300 2,300 0 0
Construction 79,300 79,600 78,200 -300 1,100
Manufacturing 226,500 226,000 218,800 500 7,700
Trade, transportation and utilities 312,900 312,800 307,900 100 5,000
Information 18,700 18,900 19,100 -200 -400
Financial activities 109,600 109,300 109,300 300 300
Professional and business services 141,300 139,800 139,900 1,500 1,400
Education and health services 226,800 225,300 225,900 1,500 900
Leisure and hospitality 141,200 141,400 131,100 -200 10,100
Other services 56,300 56,400 54,600 -100 1,700
Government 260,300 259,600 254,200 700 6,100
 (above data subject to revision)          

 

Unemployment Insurance Claims for Iowa
           
        % Change from
  July June July June July
  2022 2022 2021 2022 2021
           
Initial claims 6,589 6,420 8,362 2.6% -21.2%
Continued claims          
     Benefit recipients 9,035 8,889 16,661 1.6% -45.8%
     Weeks paid 27,641 29,043 61,116 -4.8% -54.8%
     Amount paid $11,713,985 $12,478,779 $22,806,572 -6.1% -48.6%

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